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An Illustration Of Model Bye-Laws Of Co-Operative Housing Societies

A society is not simply made of bricks and people; it is always abided by certain rules & regulations. EezyLife, a one-stop solution for community management services always maintains and supports these rules, while it aims to turn your journey an easylife making it more competent, convenient, and secure. EezyLife’s variety of services ranging from the digital notice board, SOS to utility bill payment, and many more, all are there to bring an elevation in your everyday life style.

 Have you ever wondered, why a society charges for maintenance, or what are the responsibilities of the society, or what are the powers that the members have? Here all your questions will be quenched.

All the answers of your queries are hidden in a discreet tiny book called ‘Model Bye-Laws.

What is ‘Model Bye-Laws’:

Model Bye-Laws includes all the rules created by the societies to self-manage all their activities encompassing their members. The bye-laws are provided and mandated by the higher authorities like government or legislative authorities, though these laws may vary to the state to state in particular; however, the basic structure and nomenclature remain the same.

Let’s know further about the different categories of the bye-laws of society, ranging it from trivial matters like arranging events, putting notices, holding a meeting to major matters like issuing shares to the members, power of a society, collecting different charges from members and many more.

Name and Address:                     

This segment informs us about the procedure of selecting a name for the society, changes in name, categorization, detailed procedure of changing an address, and displaying the Name of Board of the Society.

Nomenclature:                             

It indicates the body or system of names used in a particular specialist field. In the regard to housing co-operative, it clearly defines the commonly used terms like common areas, sinking funds, active members and so on and legally discerns common usage of words.

Area of Operation, Objectives, Affiliation:

This section clearly defines the locality of the society within a municipality and its objectives and aims and also points out it as Member of the Co-op Housing Federation of the District / Ward / Taluka, the District Central Co-operative Bank of the district.

Fund Raising and Its Usage:                                                

These bye-laws highlight the methods of raising funds like issuing shares, taking loans, voluntary donations, and so on as well as states the process of issuing shares to the members and the liability limitations of the society. How the funds will be utilized are also explained, like an emergency fund, reserve fund, repair and management fund, and training fund.

Rights of Members:

This segment explains, what are the eligibility criteria, conditions, and procedures to get the membership of the society and also distinguishes between active, non-active, associate, and nominal members. Different rights of the members such as the right to inspect records, get a copy of bye-laws, right to Occupation of Residence, conditions for and acceptance of Resignation by Members, the procedure for Nomination by a Member and its revocation/revision, procedure and requisite documents for Transfer of Shares and interest from a member to another in the Capital/Property of the Society, Transfer of Shares and interest of the deceased Member, and rules on Exchange and Sub-letting of residences, all are stated herein great details.

Responsibilities and Liabilities of Members:

Under this section of the bye-laws comes the details of the duties and responsibilities of the members which range from applying for permission, making additions and alterations in a flat, allowing examination of flats, and reporting about repairs to not to cause inconvenience to other members.

It also details the grounds on which a person can be ceased as a member and the actions and procedures that a society can take and includes the rules of owning multiple flats, liability limited of members, unpaid amount on shares too.

Society Charges:         

Here, this section entails the composition and break-up of the society charges that include Property Taxes, Water Charges, Common Electricity Charges, contribution to Repairs and Maintenance Fund, expenses on Repairs, Service Charges, Car Parking Charges, Interest on the defaulted charges, Repayment of the Loan, Installment, and Interest, Non-occupancy Charges, Insurance Charges, Lease/Rent, Non-agricultural Tax, Education and Training Fund, Election Fund, and any other charges of the society.

Responsibilities and Power of the Society:

These bye-laws are certain rules specific to the common seal and incorporation of the society as holding the power to acquire, hold, and dispose of the property, to enter into contracts and other legal proceedings. It also incorporates charge on the shares and/or interest of a Member, policy for allotment of flats and cancellation of flats, handing over possession of flats, society’s duty to carry out the structural audit, allotment of parking lots and its restrictions, marking of parking lots and their eligibility, along with payment of charges for parking of vehicles.

Society Meetings:

From how to conduct society meetings including general, annual, and special body meetings, to their rules, functions, and responsibilities all are discussed in this section. These bye-laws also include the details of the voting rights of members, recording of the minutes of the meeting, holding of the adjourned General Body Meeting of the societies.

Management of Regular Affairs:

Thee bye-laws explain the functions of the Managing Committee, Chairman and Secretary of the society, opening up of bank account for operations, strength (in numbers) of the Managing Committee, guidelines for Election, First Meeting of the new committee, duration of holding office, conditions for the cessation of membership of the Committee, and Resignation of Committee Member/Office bearer.

Book-keeping:

Here, the complete lists of maintaining books of accounts, records, and registers are mentioned, encompassing cash books, ledgers, Sinking Fund, Investment, Nomination, Loan Registers, Applications for membership, resignations, correspondences received from within the society or from external agencies related to property tax, conveyance, electricity, vouchers, and counterfoils of share certificates and issued cheques, periodical statement of accounts, audit memos, election papers, service staff payment records and many more..

Profit Distribution:

Here, rules on how to distribute funds (after paying interest on loans/deposits and after making such other deductions) are described clearly in bye-laws.

Writing off Dues:

These bye-laws describe the conditions under which the Society is allowed to write off its irrecoverable charges due to the members, the expenses incurred on recovery, and the accumulated losses.

Accounts Audit:

The fundamental procedure for conducting an annual financial audit of the society is prescribed in detail in this section.

Conveyance, Development/Redevelopment, and Repair/Maintenance:

This section proceeds with the details of the deed conveyance under society’s name through an advocate and lists the rules of renovation and repair. Each member’s contributions towards this is stated, along with the procedure of inviting tenders from architects/ developers, and a detailed guide to the entire redevelopment process is given along with the guidelines on emergency planning schemes, disaster management, and response machinery.

Miscellaneous matters:

Trivial yet important rules regarding everyday operational activities are mentioned here including sending and displaying notices on general meetings and their resolutions, how to fix the Notice Board and what to display on it, penalty amounts for member breaches against the society, regulating the services, amenities as per members’ convenience, fixing timings, rules for use of common areas such as parks, staircases, etc, making available spaces for members to install solar energy electrical systems, making copies of the documents required by the members and the charge per page. 

Member Complaints:

According to the nature of the complaint, the bye-laws give a list of relevant authorities who are to look into the matter.

Why Do You Need to Know about Model Bye-Laws:

Being a responsible member of the society you should explicitly know the bye-laws as in each step these will guide you in the right direction, to the right steps. These bye-laws may seem massive monotonous legal lines to you but as an integral part of the society, you need to be well aware of the rules and regulations of the society and members and how it functions. To stop any kind of discrepancy and to maintain transparency within your society bye-laws are unavoidable.

When you get connected with EezyLife, your society becomes our commitment. We bring all our community management services to your doorstep following all the rules and guidelines of model bye-laws. We value and respect the ethics of the work.

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